If you’ve been thinking of buying a new home, you’ve likely already wondered when is the best time of the year to move forward with such an investment– among other considerations aimed at finding the best possible real estate deal.
Fortunately, continued advancement in technology has helped transform the way we do property transactions. Platforms such as Ohmyhome have made it easier than ever to discover deals on properties–no matter where it is in the Philippines or what time of the year it is.
However, considering the timing of homebuying can still prove advantageous, and you might find that the last few months of 2021–or most years, for that matter–is what brings some great value for money. Read on to learn why buying a home within the last few months of this year will be to your advantage, be it from a financial standpoint, being able to get the most out of what you pay for, and, even getting your money back.
For some, the end of the year means receiving 13th (and sometimes 14th) month-pay and other similar bonuses. More often than not, these are significant amounts, to the tune of at least a month’s worth of salary. While these are commonly spent on holiday expenses, this “extra” income can also serve as a great jumpstart to property investment. Granted, hardly does a month’s worth of salary cover a home’s down payment, much more its full-on price.
However, a bonus salary or 13th-month pay is often more than enough to cover a few mortgage payments or at least cover most of the expenses associated with buying property such as documentary stamp and transfer taxes, or title registration and notarial fees. Spending your year-end bonus on a property investment is surely a greater use of your extra income instead of another holiday where it seems to just disappear.
Lower property prices
While there may not be as many homes for sale listed towards the end of the year, the last three to four months are generally considered a good time to buy because of price reductions. Individual sellers whose properties haven’t yet sold tend to be more motivated as the holidays near and, similarly, larger realtors and developers are aiming to meet or surpass their sales targets–be it at the expense of offering their properties at slightly lower prices.
Granted, it isn’t favorable to literally wait at the last few weeks or final month of the year before buying, as the purchase may take longer to close due to the holiday season. In addition, listings tend to be limited during the later months of the year, and buying at the last minute commonly entails having to work with not as many property options.
Favorable interest rates and terms
According to the Bangko Sentral ng Pilipinas (BSP), home loans granted in early 2021 for all types of new housing units in the Philippines contracted by 32-percent compared to the fourth quarter of 2020. As a result, banks have continued adjusting the terms and other aspects of their housing loans to encourage borrowing, which has been helped by the BSP keeping overnight deposit and lending rates at 1.5% and 2.5%
This alone has made 2021 an ideal time to buy a home despite the pandemic. However, health crisis notwithstanding, lenders also typically offer up various promotions during the final few months, both as a means to, again, meet or surpass their business targets for the year and to compete with the year-end promotions being offered by other lenders.
In the Philippines, “‘tis the season” as early as September. From a commercial perspective, the early celebration of the season means a multitude of holiday and year-end promos, with homes for sale and real estate financing being no exception. While these “extras” are meant to have you buy or borrow now rather than later, they can work to your advantage too when you find the promo that is right for you.
Homebuying promos can range from waived processing fees, extended payment terms, or even be in the form of discounts or freebies on other things that coincide with your purchase of a home, such as the purchase of brand new appliances or a subscription to internet services. Of course, among the most advantageous is when you can lower what you spend or, in other instances, get some of your money back:
Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.
Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down their choices and find the property that best suits their budgets, home needs, and lifestyle preferences.
The company’s Real Estate agents help in the shortlisting of options and provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.
Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.